|  |  |  |
| --- | --- | --- |
|   | (b) | **Exceeding Damage Notification Threshold:** all insurance proceeds in excess of the Damage Notification Threshold of any property, damage or loss to the Aircraft, any Engine or
any Part occurring during the Term not constituting an Event of Loss will be paid to Lessor and applied in payment (or to reimburse Lessee) for repairs or replacement property effected in accordance with the Lease. Subject to Section 5.20 of the
CTA, any balance remaining shall be paid by Lessor to Lessee;  |

  




|  |  |  |
| --- | --- | --- |
|   | (c) | **Below Damage Notification Threshold:** insurance proceeds in amounts below the Damage Notification Threshold shall be paid by the insurer directly to Lessee or its order;
 |

  




|  |  |  |
| --- | --- | --- |
|   | (d) | **Liability Proceeds:** all insurance proceeds in respect of third party liability will be paid by the insurers to the relevant third party; and  |